Becoming a home owner is a dream nurtured by each and every single person. Between living in a rented accommodation and having the financial security of a permanent roof over your head, it is natural that everyone would desire the latter. But with the ever-rising property prices, not everyone can afford to purchase a home form their savings. Most people have to rely on home loans to become home owners.
CIBIL Scores
Lenders typically check a borrower’s repayment capacity before they provide the loan. They assess several criteria before determining the loan amount. One such criterion is the borrower’s credit or CIBIL score. A CIBIL score is simply a three digit numeric summary that gives lenders an insight into a borrower’s credit repayment behaviour. Most lenders look for credit scores exceeding 750 points to provide a loan. That said, some lender provide home loans despite bad credit scores. Here’s how you can get a home loan for low CIBIL score.
Getting a home loan with low CIBIL scores
Here are a few ways in which you can get a home loan despite bad credit scores.
Final Word
While it is not impossible to get a home loan despite a low credit score, there are a few things you need to keep in mind. You must remember that opting for home loan for low CIBIL score can result in you receiving a higher rate of interest on the loan. Also, if you default on the EMI repayment, your credit score can be impacted further which might make it difficult for you to get a loan in the future. You must ensure you pay your EMIs on time. Make sure you keep adequate funds in your bank account and opt for the auto-debit facility so that you never miss your monthly EMI payments.